Homeowner Insurance
Council Tax On Unoccupied Property
If you own a property that becomes unoccupied one of the first things to do is to check with your local authority about possible exemptions from Council Tax and with your insurance company as you may need to purchase specialist unoccupied property insurance. In relation to Tax, the CAB website www.adviceguide.org.uk has some general guidance – here is a brief summary of their main points
Properties that may be exempt include:
• Unoccupied and unfurnished – 6 months max
• Unoccupied and needing major works to make it fit for habitation – 12 months max
• Condemned
• Re-possessed by lender
• Empty because former resident needs to be cared for elsewhere
• Some British Council tenants
• Unoccupied residential boat or caravan- 6 months max
• Occupants all under 18
• Occupants all have severe mental impairment
• Self contained unit where occupant is a dependent relative.
Do not take this as guidance on your individual case- make sure you check with the relevant experts. Also be sure to set up a specialist unoccupied property insurance; a standard homeowner insurance policy will probably not be suitable.
Unoccupied property – don’t get sued if it snows
Like all property, an unoccupied house can be a source of legal action if a visitor is injured. Just because the building is empty does not mean that the postman and other visitors will not walk up the path. Every winter there are stories of injuries on icy and dangerous paths- what should the owners of unoccupied buildings do to protect themselves?
The government has published a Snow Code to help householders cope with heavy snowfall and it contains advice on how to clear your paths safely. People have been worried that if they clear up the snow and end up making a path more slippery you will be liable to anyone injured. The code aims to encourage people to take a commonsense approach and reassures people that they are unlikely to be sued if they are doing their best.
Owners of unoccupied property may live miles away and find it difficult to look after it with the care of an owner-occupier. It does make sense to have someone keeping an eye on it to report any problems; especially if visitors such as potential tenants or purchasers are expected. Your unoccupied property insurance policy will probably contain conditions about how the unoccupied property should be looked after- make sure you know what you have to do to keep the policy valid.
The Snow Code is at www.direct.gov.uk
Wrong locks can invalidate policy
When you fill in a proposal form for property insurance you will almost certainly be asked about the locks. It is easy to assume that your property, whether it be your own home or an unoccupied one has suitable locks on all the doors or windows. If you are insuring your own house as an owner occupier it is easy to check but this is not the case with a let or unoccupied property that might be miles away. The worst thing you can do is assume that the security precautions comply with your insurers’ requirement- there is no alternative to checking them yourself or asking someone else to do it for you. You will find variances of security required for homeowner insurance, unoccupied property insurance and landlord insurance.
Most insurers will require five lever mortice locks conforming to BS 3621 and there may be special rules about patio doors so check your policy. If you fail to comply with the standards set in your policy you may find your claim turned down. It may make sense to change the locks periodically; especially if you know that several people have been given keys but you can only account for a few of them.
Headaches for owners of unoccupied property
Owning an unoccupied property might not seem much trouble, especially if have purchased unoccupied property insurance but if it is not maintained properly you could find yourself on the receiving end of a claim for compensation. A visitor or passer by could easily be injured and find a lawyer to pursue you; possibly under a “non win, no fee” agreement. It is a good idea to check empty property regularly and have a plan for dealing with any disrepair; especially if it could be dangerous. A specialist insurance policy is needed – standard policies will probably not be suitable.
You may also find the local authority taking more than a passing interest in your unoccupied property. Many councils even have “empty property” officers dedicated to resolving issues such as complaints from neighbours about unsightly vacant premises. It is the responsibility of the building control section to deal with reports of dangerous structures. If they think an unoccupied building is unsafe they will give the owner a deadline to repair it and if necessary the council can take action to make it safe. The support of a specialist insurer that offers unoccupied insurance can be a real benefit if things go wrong with your unoccupied property but make sure you check your policy carefully and follow the insurer’s requirements.
Millions have property stolen abroad whilst travelling
A major supermarket chain has released research for travel insurance showing that in the last five years five million British travelers have had personal property stolen while abroad on business or holiday trips. On average they reckon that £326 each was lost. Cash is the most likely item to be stolen – amounting to 35% of all cases.
It makes sense to look after your possessions. Not only are you less likely to have them stolen but your insurance policy will probably only pay out if you have taken reasonable care. Also check that your travel policy actually covers the items you are taking; a standard policy might not give you sufficient cover for skis, scuba gear, cameras and so on. Consider a specialist policy if you are off on a skiing (skiing travel insurance), sailing (sailing travel insurance) or golfing holiday (golf travel insurance).
If you are unlucky enough to have had something stolen and you need to make a claim under your travel insurance policy it is always best to report the crime to the local police and obtain a reference number. If the loss occurred on a flight you should complete the appropriate form for the airline.
Insurance fees under the spotlight
Which? recently conducted a survey 151 motor insurers and 180 home insurers on insurance fees and have reported that 70% of car insurers and 33% of home insurers now charge for simple changes such as updating an address or marital status. It was also reported that the average cancellation fee for home insurance is £31 and £40 for car insurance.
Which? believe that many of the fees were hidden in the small print and are excessive so they have issued a warning to consumers to take notice of the fees when purchasing policies.
For motor policies the average fee for updating your details was £21, the highest being £55. Home insurance policies were slightly cheaper, with an average of £18 and the highest being £35. It was even discovered that just to obtain a copy of your certificate if you happen to accidentally lose it could cost you up to £30.
So how does click4quote compare to the information released by Which? Well for all of our products such as homeowner insurance, landlord insurance, unoccupied property insurance and travel insurance we make NO FEE for making simple changes to your policy such updating your address or married name. We do not even charge for copy documents if you happen to lose them – we feel that is fair to our customers.
Yes, like most other companies we do currently make cancellation charges but our fee is just £15, half the average cost other home policies in the survey – so again we feel our charge is reasonable and fair.
For high quality customer service from UK based staff call click4quote.com on 08450 89 90 91. If you would like to call from your mobile, we understand that 0845 numbers are not usually included within your ‘package’ if you have a monthly contract, which is why we also give you the option to call our local number 01206 771 755.
Let property landlord ordered to repay rent
A Birmingham buy to let landlord has been ordered to repay £7,500 of rent he collected from tenants on housing benefit. The reason was that he had failed to obtain a House in Multiple Occupation Licence. The order was made by the Residential Property Tribunal who decided that the council should receive a refund of the housing benefit rent they had paid while the let property was unlicenced.
The Tribunal is empowered to order landlords to repay up to twelve months rent. If a tenant is not on housing benefit the rent is repaid direct to the tenant.
A spokesperson for Birmingham City Council said “We have shown time and again we will not hesitate to prosecute landlords who do not have HMO Licences and fines can be up to £20,000. In this case we are the first local authority in the West Midlands to secure a rent repayment order”.
Landlords of let property need to make sure their let property insurance is suitable for the type of tenant and letting they are engaged in, and that they have disclosed all the circumstances to the insurer. Landlord insurance is different to normal homeowner insurance so you should seek specialist cover or else you may find yourself not covered.
Bicycle thefts – lock it or lose it
Theft of bikes has increased dramatically in the last couple of decades with an estimated 500,000 bikes being stolen in the UK each year. The combined value of these is probably well in excess of £10 million. London is the hotspot for bicycle theft but cities like Cambridge and Oxford also have more than their fair share.
More than half of all thefts take place when the bike is in or very near to the owner’s home; in a shed or garage for example. A few precautions will reduce the chance of your bicycle being stolen and improve your chances of making a successful claim on your home insurance:
- Always lock your shed or garage if your bike is inside
- If you are out with your bike only let it out of your sight if is locked to an immoveable object with a high quality lock
- Keep a note of the serial number and the original purchase receipt
- Mark the bike with an ultraviolet pen
- Keep some photos of your bike
Your homeowner insurance will probably only cover your bike if you have declared it to the insurers so make sure you are properly covered and aware of the insurers’ requirements. You should also consider the cover given under any holiday home insurance cover which may differ.
For a competitive home insurance or holiday home insurance quote contact click4quote on 08450 89 90 91 or 01206 771 755.
Cold snap costs insurers £35 million
One property insurance company reckons that since the beginning of December, UK policyholders have made nearly 16,000 claims relating to water damage totalling something like £35 million. The cold weather has obviously caused inconvenience and even misery for many property owners. In some parts of the country temperatures dropped to an amazing -22C overnight and it is little wonder that pipes froze and then burst.
According to this research the average insurance claim for burst pipes is £2,218. This might not seem too much but it conceals the nuisance and stress caused if your property floods.
It makes sense to know how to turn off the water at the stopcock or meter. Also ensure that the pipes are adequately lagged. If you are leaving the property unattended for a few days make sure that sensible precautions are taken to keep it warm and safe. If the property is unoccupied for a longer period check your insurance cover to make sure you follow the insurer’s requirements.
If you have a property click4quote can offer quotations for landlord insurance, homeowner insurance, uk holiday home insurance and let property insurance. Go online or call us on 08450 89 90 91 or 01206 771755
New protection for tenants from sale and rent back landlords
A new breed of landlord has appeared in the last few years. They will buy your home from you but you can stay in it as a tenant. If you are struggling to pay a mortgage it is tempting to see this arrangement as the answer to all your problems because your mortgage debt disappears but you stay in the house of your choice.
As with all financial transactions there are pitfalls and good advice is essential. Will you receive a fair price and how long will you be allowed to stay under the new lease? The purchaser is unlikely to offer as much as the house might be worth on the open market and the lease might not give very much security.
The Financial Services Authority is issuing some new rules to protect people thinking of selling and renting back. The new rules apply from June 2010 and include:
A 14 day cooling off period
The new landlord must offer at least a five-year lease
The arrangement must be affordable and appropriate for the consumer.
See the FSA website for more information : www.fsa.gov.uk
Incidentally, the landlord and tenant will need to ensure that they have appropriate insurance cover in place. Does anyone have experience of this type of arrangement?
Click4quote offer landlord insurance online. Our landlord insurance can protect the property when rented unlike most standard homeowner insurance which excludes this situation meaning the cover is invalid.